(Reference Translation)

June 17, 2020

Summary of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020
<under Japanese GAAP>
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

MIKUNI CORPORATIONFirst Section of Tokyo Stock Exchange7247
http://www.mikuni.co.jp/
Hisataka Ikuta, President, CEO & COO
Hisashi Shibata, General Manager Treasury & Accounting Dept. Corporate
Division
TEL: +81-3-6895-0038

Scheduled date of Ordinary General Meeting of Shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file the Annual Securities Report:
Preparation of supplementary material on financial results:
Holding of financial results presentation meeting:June 26, 2020
June 29, 2020
July 20, 2020
Yes
None

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated financial results for the fiscal year ended March 31, 2020
(from April 1, 2019 to March 31, 2020)(1) Consolidated operating results(Percentages indicate year-on-year changes. Figures in parentheses are negative figures.)
Net sales

Operating income

Fiscal year ended

Millions of yen%

March 31, 2020

110,499

March 31, 2019

121,803

Note: Comprehensive income

Millions of yen

Net income attributable toowners of parent

Ordinary income%

Millions of yen(9.3)

2,410 (45.3)

1,858(57.6)(4,014)

–

17.4

4,403

4,381

7.7

2,262

(11.2)

6.9

Fiscal year ended March 31, 2020:
Fiscal year ended March 31, 2019:
Basic earnings
per share

Diluted earnings
per share% Millions of yen%(5,706) million yen[– %]337 million yen [(90.7) %]Return on equity

yen

Ratio of ordinary
Ratio of operating
income to total
income to net sales
assetsFiscal year ended

yenMarch 31, 2020

(119.30)–(13.9)

2.0

2.2

March 31, 2019

67.26

–

7.0

4.7

3.6

Reference: Share of income (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2020: (141) million yen
Fiscal year ended March 31, 2019: (35) million yen

%

%

%

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

yen

March 31, 2020

90,396

26,72628.6

767.72

March 31, 2019

96,76832,95533.1

952.60

Reference:

EquityAs of March 31, 2020:
As of March 31, 2019:25,841 million yen
32,036 million yen(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodFiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2020

2,389

(6,997)

3,022

4,672

March 31, 2019

5,121

(6,607)

2,770

6,046

2.

Dividends
Annual dividendsFirstquarterend

Secondquarterend

Third
quarterend

Fiscalyearend

Total

Total dividends(Total)Dividend
payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

yen
yen
yen
yen
yen Millions of yen%%
Fiscal year ended
–
5.00
–
10.00
15.00
507
22.3
1.6
March 31, 2019
Fiscal year ended
–
5.00
–
5.00
10.00
338
–
1.2
March 31, 2020
Fiscal year ending
–
–
–
–
–
–
March 31, 2021
(Forecast)
Note: Dividends for the fiscal year ending March 31, 2021 have not yet been determined as it is difficult at this stage to rationallycalculate the earnings forecasts due to the impact of the spread of novel coronavirus disease (COVID-19).

3.

Consolidated earnings forecasts for the fiscal year ending March 31, 2021
(from April 1, 2020 to March 31, 2021)
The consolidated earnings forecasts for the fiscal year ending March 31, 2021 have not yet been determined as
it is difficult at this stage to rationally estimate the impact of the spread of COVID-19. The Company will
disclose the forecasts once it is possible to make a calculation.

* Notes(1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries
resulting in changes in the scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards and other regulations: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: None
(3) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020
As of March 31, 2019b.

Number of treasury shares at the end of the period
As of March 31, 2020
As of March 31, 2019c.

34,049,423 shares
34,049,423 shares

389,592 shares
418,249 shares

Average number of shares during the period
Fiscal year ended March 31, 2020
Fiscal year ended March 31, 201933,651,641 shares
33,631,565 shares(Note) The Company’s shares held by the “Management Board Incentive Plan (BIP) Trust” are included in the number oftreasury shares at the end of the period (204,280 shares as of March 31, 2020 and 233,500 shares as of March 31,2019).
In addition, the Company’s shares held by the “Management Board Incentive Plan (BIP) Trust” are included intreasury shares, which are deducted in calculating the average number of shares during the period. (212,808 sharesin the fiscal year ended March 31, 2020 and 233,500 shares in the fiscal year ended March 31, 2019)

(Reference)

Summary of non-consolidated financial results

Non-consolidated financial results for the fiscal year ended March 31, 2020
(from April 1, 2019 to March 31, 2020)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)
Net sales

Operating income

Ordinary income

Net income

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2020

75,458(12.5)(1,032)

–

1,930

44.6

(2,851)–March 31, 201986,24825.1

244(19.0)

1,335(33.3)

670(62.1)

Basic earnings
per share

Diluted earnings
per share

Fiscal year ended

yen

yen

March 31, 2020

(84.73)–

March 31, 2019

19.95

–

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

yen

March 31, 2020

62,36517,75028.5

527.34

March 31, 201967,83722,44933.1

667.51

Reference:

EquityAs of March 31, 2020:
As of March 31, 2019:17,750 million yen
22,449 million yen* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Disclaimer regarding forward-looking statements
1. The consolidated earnings forecasts for the fiscal year ending March 31, 2021 have not yet been
determined as it is difficult at this stage to rationally estimate the impact of the spread of COVID-19. The
Company will disclose the forecasts once it is possible to make a calculation.
2. The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company at the time of the release of these materials. Actual results
may differ from the forecasts due to various factors.

[Attached Material]
Index

1. Overview of operating results and others ............................................................................................... 2(1) Overview of operating results for the fiscal year ............................................................................. 2(2) Overview of financial position for the fiscal year............................................................................ 4(3) Basic policy for distributing incomes, and dividends for the fiscal year under review andnext fiscal year ................................................................................................................................. 4
2. Status of the corporate group .................................................................................................................. 5
3. Basic concept regarding selection of accounting standards ................................................................... 5
4. Consolidated financial statements and significant notes thereto ............................................................ 6(1) Consolidated balance sheet .............................................................................................................. 6(2) Consolidated statement of income and consolidated statement of comprehensive income ............. 8(3) Consolidated statement of changes in equity ................................................................................. 10(4) Consolidated statement of cash flows ............................................................................................ 12(5) Notes to consolidated financial statements .................................................................................... 14(Notes on premise of going concern) ............................................................................................. 14(Change in presentation) ................................................................................................................ 14(Segment information, etc.) ........................................................................................................... 15(Per share information) .................................................................................................................. 17(Significant subsequent events) ..................................................................................................... 17

-1-

1.

Overview of operating results and others(1) Overview of operating results for the fiscal year
In the current fiscal year (from April 1, 2019 to March 31, 2020), the Japanese economy continued its
moderate recovery, due to a pick-up in personal consumption reflecting improved employment situation.
As for overseas, in addition to the aspect of rising tensions concerning issues over trade, economic
activity in China gradually slowed. Furthermore, since January, the global spread of COVID-19 has
greatly reduced economic activity in Japan and overseas.
In this business environment, sales declined in the Aircraft Component Import and Sales Business, which
had seen a significant sales increase in the previous fiscal year, and the Group’s net sales amounted to110,499 million yen (down 9.3% year-on-year). In terms of income, declining demand for products forautomobiles, particularly in China and India, led to operating income of 2,410 million yen (down 45.3%
year-on-year). Some consolidated subsidiaries in Japan and all overseas consolidated subsidiaries otherthan India have fiscal years beginning on January 1, 2019 and ending on December 31, 2019, and theimpact from the spread of COVID-19 was immaterial. Ordinary income amounted to 1,858 million yen(down 57.6% year-on-year). Net loss attributable to owners of parent stood at 4,014 million yen (netincome attributable to owners of parent of 2,262 million yen in the previous fiscal year) partly because of
the recording of an impairment loss on non-current assets in extraordinary losses.
Operating results by segment are as follows.
The Turf-maintenance Equipment, etc. Sales Business, which was previously included in Other
Businesses, has been presented as a new segment because its quantitative materiality increased.
(i)<Automobile-related Products Business>
Sales in this business, which centers on the manufacture and sale of fuel supply systems forautomobiles, motorcycles, and general purpose engines and engine-related functional components,
decreased compared with the previous fiscal year. In addition to increased demand for products foroutboard motors, products for motorcycles sold well. On the other hand, demand for products forautomobiles continued to decline in China and India. In addition to the aforementioned, there wasalso an impact from the spread of COVID-19 in Japan and India. As a result, net sales in thisbusiness amounted to 70,200 million (down 2.7% year-on-year), while operating income was 2,736
million yen (down 34.2% year-on-year).

(ii) <Household Appliances Device Products Business>
Sales in this business, which centers on the manufacture and sale of control systems for gas
appliances and water appliances, decreased from the previous fiscal year. In response to intensifiedcompetition in the key market of China, the Group revised its product strategies and restructured its
development and production system. As a result, net sales in this business amounted to 5,819
million yen (down 12.2% year-on-year), and there was an operating loss of 345 million yen(operating loss of 348 million yen in the previous fiscal year).
(iii) <Aircraft Component Import and Sales Business>
Sales of aircraft components decreased from the previous fiscal year. In the previous fiscal year,
demand for imported materials, etc. increased significantly accompanying a shift to the mass
production of newly developed commercial aircraft. However, in the current fiscal year, thetemporary effect of the initial stage of the shift to mass production had reduced. As a result, net
sales in this business amounted to 28,733 million yen (down 19.4% year-on-year), and operating
income was 346 million yen (down 55.0% year-on-year).
(iv) <Turf-maintenance Equipment, etc. Sales Business>
Sales of the Turf-maintenance Equipment, etc. Sales Business declined from the previous fiscal
year. This was partly due to the effect of the succession of natural disasters. As a result, net sales inthis business amounted to 3,462 million yen (down 22.5% year-on-year), and operating loss was
386 million yen (operating loss of 248 million yen in the previous fiscal year).

-2-

(v) <Other Businesses>
Sales in this segment, which handles the manufacture and sale of vehicle heaters, welfare and caredevices and other products, decreased from the previous fiscal year. Net sales in Other Businesses
amounted to 2,284 million yen (down 22.4% year-on-year), and operating income was 59 million
yen (down 16.1% year-on-year).
[Comparison table of operating results by segment]
Fiscal year ended
March 31, 2019
Operating
Net sales
incomeFiscal year ended
March 31, 2020
Operating
Net sales
income(Millions of yen)
Change inoperating income

Change innet sales
AmountRatio

Amount

Ratio

Automobile-related Products
72,137
4,160
70,2002,736(1,936)(2.7)%(1,423)(34.2)%
Business
Household Appliances Device
6,624
(348)
5,819
(345)
(805)
(12.2)%
2–
Products BusinessAircraft Component Import
35,632769
28,733346(6,899)(19.4)%(423)(55.0)%and Sales Business
Turf-maintenance Equipment,
4,465
(248)
3,462
(386)
(1,003)(22.5)%(138)–
etc. Sales Business
Other Businesses
2,943
70
2,284
59
(659)
(22.4)%(11)(16.1)%
Total
121,803
4,403
110,4992,410(11,303)(9.3)%(1,993)(45.3)%
Reference: exchange rate
1 USD = 110.44 yen
1 USD = 109.03 yen––(Notes) 1. The figures inside parentheses in the column presenting operating income indicate the amount of operating loss.
2. Amounts less than one million yen are discarded.
3. “–” indicates a negative change in the current fiscal year or the previous fiscal year or both.

[Reference] Performance trends for each quarter from the fiscal year ended March 31, 2018 to fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2018
Automobile- Net sales
relatedOperating
Products
incomeBusiness
Household Net sales
Appliances
DeviceOperatingincomeProducts
Business
Aircraft
Net sales
Component
Import and Operating
incomeSales
Business
TurfNet sales
maintenance
Equipment, Operating
incomeetc. Sales
Business
Net sales

Other
Businesses Operating
Total

incomeNet sales
Operatingincome(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019

First quarter

SecondquarterThird quarter

FourthquarterFirst quarter

SecondquarterThird quarter

FourthquarterFirst quarter

SecondquarterThird quarter

Fourthquarter

15,711

15,822

17,42818,497

16,954

17,645

18,846

18,69016,801

16,904

17,39919,094

918

575

1,147

999

1,065

631

1,365

1,097

639

283

679

1,133

1,701

1,974

2,187

2,103

1,663

1,817

1,685

1,458

1,319

1,458

1,557

1,483

15

94

102

34

(20)

(102)

(63)

(161)

(166)

(118)

(23)

(37)

5,306

5,062

5,314

5,264

8,697

8,980

9,383

8,570

7,473

7,180

6,892

7,186

56

33

88

14

219

299

206

44

139

65

100

40

1,218

1,119

874

1,344

1,053

1,152

988

1,270

1,083

1,098

565

714

(1)

3

(81)

47

(38)

(53)

(120)

(35)

(18)

(58)

(133)

(175)

687
644
(10)
(24)
24,625 24,624
978
682

700
31
26,505
1,288

807
73
28,017
1,168

677
(27)
29,046
1,197

665
(19)
30,261755

802
82
31,706
1,469

799
36
30,789
980

574
(38)
27,252
555

490
(30)
27,132140561
4426,977668

658
84
29,137
1,045(Notes) 1. The figures inside parentheses in the row presenting operating income indicate the amount of operating loss.
2. Amounts less than one million yen are discarded.

Future outlook
Economic activity is expected to be significantly weaker both in Japan and overseas due to the global spreadof COVID-19. The future market trend is therefore unclear, which makes it very difficult to rationallycalculate consolidated earnings forecasts for the fiscal year ending March 31, 2021. Accordingly, theCompany is leaving the earnings forecasts undetermined. The Company will disclose the consolidated
earnings forecasts when reasonable calculations can be made.

-3-

(2) Overview of financial position for the fiscal year
a. Assets, liabilities and net assets(Assets)
Total assets at the end of the fiscal year under review amounted to 90,396 million yen, a decrease of 6,372
million yen from the previous fiscal year-end.
Current assets amounted to 43,178 million yen, a decrease of 2,925 million yen from the previous fiscal
year-end. This was mainly due to a decrease in cash and deposits of 1,373 million yen and a decrease intrade receivables of 900 million yen.
Non-current assets amounted to 47,217 million yen, a decrease of 3,447 million yen from the previous
fiscal year-end. This was mainly due to a decrease in investment securities of 1,980 million yen and adecrease in deferred tax assets of 695 million yen.
(Liabilities)
Total liabilities at the end of the fiscal year under review amounted to 63,669 million yen, a decrease of
143 million yen from the previous fiscal year-end.
Current liabilities amounted to 31,206 million yen, a decrease of 4,365 million yen from the previous
fiscal year-end. This was mainly due a decrease in notes and accounts payable - trade of 3,006 million yen
and a decrease in accounts payable - other of 904 million yen.
Non-current liabilities amounted to 32,462 million yen, an increase of 4,221 million yen from theprevious fiscal year-end. This was mainly due to an increase of 3,802 million yen in long-term borrowings.
(Net assets)
Net assets amounted to 26,726 million yen, a decrease of 6,228 million yen from the previous fiscal yearend. This was mainly due to the recording of net loss attributable to owners of parent of 4,014 million yen
and a decrease of 1,356 million yen in valuation difference on available-for-sale securities.
b. Cash flows
Cash and cash equivalents (hereinafter, “cash”) for the fiscal year under review decreased by 1,373
million yen from the previous fiscal year-end, to 4,672 million yen.
The respective cash flow positions for the fiscal year under review are as follows:(Cash flows from operating activities)
Net cash provided by operating activities in the fiscal year under review was 2,389 million yen (5,121
million yen was provided in the previous fiscal year). This was mainly due to the fact that positive factors
based on depreciation of 4,621 million yen, exceeded negative factors based on a decrease in trade
payables of 3,015 million yen.
(Cash flows from investing activities)
Net cash used in investing activities in the fiscal year under review amounted to 6,997 million yen (6,607
million yen was used in the previous fiscal year). This was mainly due to 7,457 million yen in thepurchase of non-current assets.
(Cash flows from financing activities)
Net cash provided by financing activities in the fiscal year under review totaled 3,022 million yen (2,770
million yen was provided in the previous fiscal year). This was mainly due to proceeds from a 3,985
million yen net increase in borrowings.
(3) Basic policy for distributing incomes, and dividends for the fiscal year under review and next fiscal
year
The Company, taking into consideration the operating results of the fiscal year and future businessdevelopment, has a basic policy regarding dividends from surplus, etc. of carrying out result-based
distributions in a stable manner based on a medium- to long-term perspective.
Stable dividends and future business development, etc. were comprehensively examined, and as a result,a plan is in place to submit a proposal at the 98th Ordinary General Meeting of Shareholders, which isscheduled to be held on June 26, 2020, to a regular dividend of 5 yen per share of common shares of theCompany.
Regarding projected dividends for the next fiscal year (ending March 31, 2021), the Company has leftthat forecast undetermined due to the absence of earnings forecasts and forecasts of the financial position.
(Note)

The forecasts for the next fiscal year contained in these materials are forward-looking statements including risks
and uncertainties. Therefore, the actual results may differ from the forecasts stated herein due to changes ofvarious factors.
-4-

2.

Status of the corporate group
The Group (the Company and its affiliates) consists of the Company (MIKUNI CORPORATION), 21
subsidiaries, and four associates. The Group is engaged in manufacturing and sales of fuel injectionrelated products, carburetors, heaters, pumps, gas control devices, etc., the import and sales of aircraftcomponents, sales of turf-maintenance equipment, etc., and real estate leasing and other services.
Business organization chart
Reportable segments are the Automobile-related Products Business, the Household Appliances Device
Products Business, the Aircraft Component Import and Sales Business, and the Turf-maintenance
Equipment, etc. Sales Business. The business organization chart of the Group as of March 31, 2020
(showing the Company and its main affiliates) is shown below.

Overseas

Domestic
Manufacturing and sales company

Manufacturing and sales companies(Consolidated subsidiaries)(Entity accounted for using
equity method)
Mikuni Aim Corporation
Pierburg Mikuni Pump
Technology Corporation(Entity accounted for using equity
method)(Consolidated subsidiaries)
Mikuni American Corporation
Mikuni Europe GmbH
Mikuni Taiwan Corporation
Mikuni Management (Shanghai) Co.,Ltd.

(Consolidated subsidiary)Corbin Properties Incorporated

Finished goods/
merchandise

3.

External customers

Mikuni R. K. Corporation
Pierburg Mikuni Pump Technology(Shanghai) Corporation

Services company
Other Businesses

Other Businesses(Consolidated subsidiary)
Mikuni Life & Auto Co.,Ltd.

Automobile-related Products Business

Manufacturing and sales company

Sales Business(Consolidated subsidiary)
Asahi Air Supply Inc.

Mikuni (Thailand) Co., Ltd.
Mikuni (Shanghai) Co., Ltd.
Tianjin Mikuni Co., Ltd.
Mikuni (Chengdu) Machinery &Electronics Co., Ltd.
Mikuni (Zhejiang) Co., Ltd.
Mikuni Mexicana S.A.de C.V.
PT. Mikuni Indonesia
Mikuni India Private Limited

Sales companies

MIKUNICORPORATION(the Company)

Household Appliances Device
Products Business, Aircraft Component Import andAircraft Component
Import and Sales Business

External customers

Sales company

Automobile-related Products BusinessHousehold Appliances Device
Products Business

Automobile-related
Products Business(Consolidated subsidiary)
Mikuni Partec Corporation

Automobile-related Products Business, Household Appliances Device Products Business,
Aircraft Component Import and Sales Business and Turf-maintenance Equipment, etc. Sales Business

Manufacturing and sales companies

Components

Services

Basic concept regarding selection of accounting standards
The Group has prepared the consolidated financial statements in accordance with Japanese GAAP, andthere is no immediate plan to change its accounting standards. Concerning the policy for the applicationof IFRS, the Group will respond to this issue appropriately while giving consideration to various
circumstances in Japan and overseas.

-5-

4.

Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2019

As of March 31, 2020

6,046
18,924

4,672
17,875

1,731

1,881

9,425
3,855
1,689
4,496
(65)
46,104

9,603
4,337
2,043
2,822
(56)
43,17832,112(22,156)
9,956
47,758(35,891)
11,866
19,074(16,757)
2,316
11,8803,732
39,75232,002(22,910)
9,092
49,533(36,839)
12,693
19,545(17,276)
2,269
11,8383,758
39,652

77
898
976

–
975
975

6,268
33
1,432
2,377
(176)
9,936
50,66496,768

4,288
39
737
1,683
(160)
6,589
47,21790,396

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

15,111
5,647
5,087
309
3,414
567
2,666
1,669
278
817
35,572

12,104
5,683
4,850
353
2,510
307
2,294
1,350
940
810
31,206

19,291
496
1,293
2,249

23,093
551
1,747
2,249

60

52

3,472
1,377
28,24063,813

3,668
1,099
32,462
63,6692,215
1,923
20,371(181)
24,3282,215
1,923
15,862(166)
19,835

2,553

1,197

(3)
5,282
311
(436)
7,708
918
32,95596,768

(2)
5,282
114
(586)
6,005
885
26,72690,396

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable - other
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for management board incentive plan
trust
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rental income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodRental expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Reversal of allowance for doubtful accounts
Other
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Impairment loss
Loss on valuation of investment securities
Provision for product warranties
Other
Total extraordinary losses
Income (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income (loss)
Net income attributable to non-controlling interests
Net income (loss) attributable to owners of parent-8-

Fiscal year ended
March 31, 2020

121,803
105,478
16,324
11,921
4,403

110,499
96,41914,08011,670
2,410

100
174
2
209
180
666

75
195
–
112
156
539

371

425

35

141

145
–
136
688
4,381

53
363
107
1,091
1,858

8
0
131
–
0
141

24
0
–
8
0
33

69
24
–
–
575
670
3,852
1,118
375
1,493
2,358
96
2,262

76
2,009
30
678
139
2,934
(1,042)
1,328
1,604
2,933
(3,975)38(4,014)

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2019
Net income (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-9-

Fiscal year ended
March 31, 2020

2,358

(3,975)(866)
11
9(1,105)(9)(1,356)
0
–
(194)
(150)

(61)

(30)

(2,020)337(1,730)(5,706)274(5,752)63

46

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

2,215

Retained earnings

Treasury shares

Total shareholders’equity18,617(181)

22,588

1,937

Changes during period
Dividends of surplus
Net income attributableto owners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Change in scope of
consolidation
Net changes in items
other than shareholders’equityTotal changes during
period

(507)

(507)

2,262

2,262
(0)

(0)
–

(13)

(13)
–
–

Balance at end of period

–

(13)

1,754

(0)

1,739

2,215

1,923

20,371(181)

24,328

Accumulated other comprehensive income

Balance at beginningof period
Changes during
periodDividends ofsurplus
Net income
attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange inownership interestof parent due totransactions with
non-controllinginterests
Change in scope of
consolidation
Net changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
periodValuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets

3,419

(14)

5,273

1,445

(427)

9,696

910

33,195

(507)
2,262
(0)
–

(13)

–
(866)

11

9

(1,133)(9)(1,988)

8(1,979)

(866)

11

9

(1,133)(9)(1,988)

8

(239)

2,553

(3)

5,282

311

(436)

7,708

918

32,955- 10 -

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

2,215

Retained earnings

Treasury shares

Total shareholders’equity20,371(181)

24,328

1,923

Changes during period
Dividends of surplus
Net loss attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Change in scope of
consolidation
Net changes in items
other than shareholders’equityTotal changes during
period

(507)

(507)

(4,014)(4,014)
(0)

(0)

15

15
–

14

14
–

Balance at end of period––(4,508)15(4,493)

2,215

1,923

15,862(166)

19,835

Accumulated other comprehensive income

Balance at beginningof period
Changes during
periodValuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets

2,553

(3)

5,282

311

(436)

7,708

918

32,955

Dividends of surplus
Net loss attributableto owners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange inownership interestof parent due totransactions with
non-controllinginterests
Change in scope of
consolidation
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period(507)(4,014)
(0)
15

–

14
(1,356)

0

–

(197)

(150)

(1,702)(33)(1,735)(1,356)

0

–

(197)

(150)

(1,702)(33)(6,228)

1,197

(2)

5,282

114

(586)

6,005

885

26,726- 11 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2019
Cash flows from operating activities
Income (loss) before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Interest and dividend income
Interest expenses
Loss (gain) on sales and retirement of non-current
assetsShare of loss (income) of entities accounted forusing equity method
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for productwarranties
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful
accounts
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sales of shares of subsidiaries andassociates
Loan advances
Collection of loans receivable
Other, net
Net cash provided by (used in) investing activities- 12 -

Fiscal year ended
March 31, 2020

3,852
4,338
65
24
(275)
371

(1,042)
4,621
77
2,009
(271)
425

61

52

35

141

(38)

169

94

664

54

(320)

(4)

(24)

278
(3,325)
330
2,086
902
(2,551)
6,302
277
(352)
(1,105)
5,121853(1,009)177(3,015)
(871)
1,281
3,918
267
(429)
(1,367)
2,389(6,830)
490
(285)
(207)
2
(1)

(7,143)
476
(314)
(7)
0
–

158

–

(25)
14
77
(6,607)(49)
36
4(6,997)

(Millions of yen)
Fiscal year ended
March 31, 2019
Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period- 13 -

Fiscal year ended
March 31, 2020

(3,224)
11,423(4,487)
(0)
(506)
(66)
(366)
2,770

195
9,414
(5,624)
(0)
(507)
(77)
(378)
3,022

(218)

89

1,066
4,979

(1,496)
6,046

–

122

6,046

4,672

(5) Notes to consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Change in presentation)
1. Consolidated statement of income“Litigation settlement-related expenses,” which was presented separately under “Extraordinary losses”
in the previous fiscal year is included in “Other” in the current fiscal year due to its decreasedmateriality. To reflect this change in presentation, the consolidated financial statements for theprevious fiscal year have been reclassified.
As a result, 544 million yen that was presented as “Litigation settlement-related expenses” under“Extraordinary losses” in the consolidated statement of income for the previous fiscal year has been
reclassified as “Other.”
2. Consolidated statement of cash flows“Litigation settlement-related expenses,” which was presented separately under “Cash flows fromoperating activities” in the previous fiscal year is included in “Increase (decrease) in accounts payable- other” and “Other, net” in the current fiscal year due to its decreased materiality. To reflect thischange in presentation, the consolidated statement of cash flows for the previous fiscal year has been
reclassified.
As a result, 544 million yen that was presented as “Litigation settlement-related expenses” under“Cash flows from operating activities” in the consolidated statement of cash flows for the previous
fiscal year has been reclassified as 500 million yen in “Increase (decrease) in accounts payable - other”
and 44 million yen in “Other, net.”- 14 -

(Segment information, etc.)[Segment information]
1. Outline of reportable segments
The reportable segments of the Group are components of the Group that have separate financial
information available and are periodically examined to enable the Board of Directors to makedecisions on the allocation of management resources and evaluate the results of businessperformance.
The Company establishes comprehensive domestic and overseas strategies for each product andservice, and undertakes business activities in cooperation with group companies.
The Group accordingly consists of segments by product and service, with four reportable segments:
Automobile Products-related Business, Household Appliances Device Products Business, Aircraft
Component Import and Sales Business, and Turf-maintenance Equipment, etc. Sales Business.
The Automobile Products-related Business mainly manufactures and sells fuel supply systems forautomobiles, motorcycles, and general purpose engines and engine-related functional components.
The Household Appliances Device Products Business mainly manufactures and sells control systems
for gas appliances and water appliances. The Aircraft Component Import and Sales Business mainly
imports and sells aircraft components. The Turf-maintenance Equipment, etc. Sales Business mainly
sells turf-maintenance equipment, etc.
Effective from the fiscal year under review, the Turf-maintenance Equipment, etc. Sales Business,
which was previously included in Other Businesses, was reclassified as a reportable segment because
its quantitative materiality increased.
The segment information for the previous fiscal year has been prepared and presented according to
the reportable segment classification of the fiscal year under review.

2. Calculation method for the amounts of net sales, income/loss, assets and other items by reportablesegment
The accounting method for reportable segments is, in general, the same as that used to prepare
consolidated financial statements.
Segment profit (loss) of reportable segments is provided on an operating income (loss) basis.

- 15 -

3. Information regarding the amounts of net sales, income/loss, assets and other items by reportablesegment
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Millions of yen)
Reportable segment
HouseholdAircraft
TurfAutomobile
Appliances Component maintenance
ProductsDevice
Import and Equipment,
relatedProducts
Sales
etc. Sales

Total

Other
Businesses(Note)

Total

Amounts
reported in
Adjustthements consolidated
financialstatements

Net sales
To external customers
72,137
6,624
35,632
4,465
118,859
2,943 121,803–
121,803
Inter-segment sales or
–
–
–
–
–
–
–
–
–
transfers
Total
72,137
6,624
35,632
4,465
118,859
2,943 121,803–
121,803
Segment profit (loss)
4,160
(348)
769
(248)
4,333
70
4,403
–
4,403
Segment assets
74,057
6,928
10,567
2,738
94,291
2,477
96,768–96,768Other items
Depreciation
3,827
369
56
4
4,258
80
4,338
–
4,338
Amortization of
–
–
37
–
37
27
65
–
65
goodwill
Investments in entities
accounted for using
850
311
–
–
1,162
–
1,162
–
1,162
equity method
Increase in property,
plant and equipment
6,587
523
42
4
7,157
253
7,411
–
7,411
and intangible assets(Note) The “Other Businesses” category refers to a business segment not included in reportable segments including suchbusinesses as manufacturing and sales of vehicle heaters and welfare and care devices, etc.
Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable segment
HouseholdAircraft
TurfAutomobile
Appliances Component maintenance
ProductsDevice
Import and Equipment,
relatedProducts
Sales
etc. Sales

Total

Other
Businesses(Note)

Total

Amounts
reported in
Adjustthements consolidated
financialstatements

Net sales
To external customers
70,2005,819
28,733
3,462
108,215
2,284 110,499–
110,499
Inter-segment sales or
–
–
–
–
–
–
–
–
–
transfers
Total
70,2005,819
28,733
3,462
108,215
2,284 110,499–
110,499
Segment profit (loss)
2,736
(345)
346
(386)
2,350
59
2,410
–
2,410
Segment assets
71,368
5,758
8,470
2,223
87,8202,576
90,396–90,396
Other items
Depreciation
4,122
342
80
4
4,550
71
4,621
–
4,621
Amortization of
–
–
77
–
77
–
77
–
77
goodwill
Investments in entities
accounted for using
664
310
–
–
974
–
974
–
974
equity method
Increase in property,
plant and equipment
6,862
356
33
3
7,255
108
7,364
–
7,364
and intangible assets(Note) The “Other Businesses” category refers to a business segment not included in reportable segments including suchbusinesses as manufacturing and sales of vehicle heaters and welfare and care devices, etc.

- 16 -

(Per share information)
Fiscal year ended March 31, 2019(from April 1, 2018
to March 31, 2019)

Fiscal year ended March 31, 2020
(from April 1, 2019
to March 31, 2020)

Net assets per share

952.60 yen

767.72 yen

Basic earnings (loss) per share

67.26 yen

(119.30) yen

Item(Notes)

1. Diluted earnings per share for the current fiscal year is not presented since a basic loss per share was reported
and no potential shares exist. In addition, diluted earnings per share for the previous fiscal year is notpresented since no potential shares exist.
2. The shares of the Company that remain in trust and are recorded as treasury shares in shareholders’ equity areincluded in treasury shares that are excluded from the recording of the average number of shares during theperiod in calculating the amount of basic earnings (loss) per share, and are included in the number of treasury
shares that are excluded from the total number of issued shares at the end of the period in calculating net
assets per share.
Number of treasury shares at end of period deducted in calculating net assets per share
Fiscal year ended March 31, 2019
233,500 sharesFiscal year ended March 31, 2020
204,280 shares
Average number of treasury shares during period deducted in calculating the basic earnings (loss) per share
Fiscal year ended March 31, 2019
233,500 sharesFiscal year ended March 31, 2020
212,808 shares

3. The basis of the calculation of basic earnings (loss) per share is as follows:
Fiscal year ended March 31, 2019 Fiscal year ended March 31, 2020
Item(from April 1, 2018(from April 1, 2019
to March 31, 2019)
to March 31, 2020)
Net income (loss) attributable to owners of
2,262(4,014)parent (million yen)Amounts not attributable to common––shareholders (million yen)
Net income (loss) attributable to owners ofparent available to common shares (million
2,262(4,014)yen)
Average number of shares during the period
33,631,565
33,651,641(shares)(Significant subsequent events)
Not applicable.

- 17 -